Producer Prices Increased Again in May
As a Prescription-Drug Category Surged

By

John Simons and

Rochelle Sharpe Staff Reporters of The Wall Street Journal

Updated June 15, 1998 12:01 a.m. ET

WASHINGTON -- Producer prices were doped-up in May.

After a 585% rise in a prescription-drug category known as "minor tranquilizers," the Labor Department's report on prices paid to factories and other goods producers rose 0.2%. It was the second monthly increase after five consecutive months of declining prices.

Although a two-month upward trend in the producer price index could be seen as a sign that inflationary...